State-owned enterprises being reformed to pay dividends, says Tarin

KARACHI: Finance Minister Shaukat Tarin has agreed to review the proposals and recommendations of the Pakistan Stock Exchange and expressed his willingness to expedite tax refunds, reinstate tax rebate for companies upon listing, support SMEs growth through listing and funding capital market development.

Addressing a meeting with the management and major stock market participants on Friday, the minister said that the government was working on reforming the state-owned enterprises and those SOEs which have sufficient cash available would be encouraged to pay dividends and that will help increase value of PSX. He reiterated that the economy was recovering, with revenue collection at 40pc increase over the previous year.

The capital market participants included Arif Habib Group chairman Arif Habib, AKD Group chief Aqeel Karim Dhedhi, JS Group chairman Jahangir Siddiqui, managing director National Investment Trust Ltd Adnan Afridi, MUFAP chairman Dr Amjad Waheed and top management of Central Depository Company and National Clearing Company of Pakistan Ltd.

A presser released by the PSX stated that regarding the government’s plans to augment the economy and enhance the capital markets, Mr Tarin stated: “We will consolidate industry through Credit Rating Agency (CRA) to create scale. He apprised the participants that the government was focusing on information technology and software exports and encouraging start-ups.

He said that his ministry was encouraging banks and DFIs to work together with capital market entities. Mr Tarin expressed satisfaction over the progress of the stock market and stated that he would continue to visit the bourse on a quarterly basis to evaluate the development and progress of the capital market and follow through for successful implementation.

PSX Chairperson Dr Shamshad Akhtar apprised the finance minister about the recent progress made by the bourse and thanked him for easing the tax regime for the investors and brokerage industry in the last budget as it was a welcome respite for the capital market.

The director representing the Chinese consortium on the PSX, You Hang, stated, “We are very honoured to have you with us at PSX and we wish you the very best in guiding Pakistan’s economy on a sustainable growth path, adding that the Chinese consortium strongly believes that Pakistan, as a country and an economy, has great potential and we are committed to play our part in helping realise that potential”.